My fourth year running an Airbnb

We often hear the term "Passive Income" thrown around in the financial independence space. It evokes images of sipping margaritas on a beach while money magically deposits into your bank account.

But if you own real estate, you know the truth: Real Estate is not passive. It’s a business.

Here is my transparent look at the numbers for 2025.

The 2025 Scorecard

I believe in showing the receipts. Here is exactly what the property generated this year.

Here’s a snapshot of how 2025 shaped up for my Airbnb side hustle:

✅ Total Available Nights Offered: 211

✅ Total Nights Booked: 81

✅ Average Night Stay: 2.6

✅ Occupancy Rate Overall: 28%

✅ Busiest Months: May through September, Occupancy rate 64%

✅ Total Gross Income: $7274.03

✅ Management/Cleaning Hours: 90hrs

✅ Net Return on Time: $80.82/hour

The Monthly Breakdown:

Unlike previous years, where we aimed for consistency, 2025 was a year of peaks and valleys.

• The Highs: Summer and early Fall remain our sweet spot.

  • June: $1,303.05

  • September: $1,289.87

  • August: $960.59

• The Lows:

  • January & February: $0.00, not much going on here in the winter.

The "Hidden" ROI: Tax Strategy

Looking at $7,274 in earnings might not seem like a "quit your job" amount of money. But cash flow is only one piece of the real estate puzzle.

The biggest benefit of operating this Airbnb in 2025 wasn't just the deposits, it was the Tax Efficiency.

Because I treat this as a legitimate business and claim every single cent of income on my tax return, I am also able to legally deduct a portion of the property's operating expenses.

What gets deducted?

✅ Eligible Expenses (please confirm with your tax professional):

• Mortgage Interest, Property Tax, Utilities

• Internet, Cable, and TV Subscriptions

• Furnishings, Repairs, and Maintenance

• Consumables (Coffee, tea, fruits, etc)

• Cleaning and Toilettrie Supplies, ABNB host fee

Even though the rental income was lower this year, the expenses associated with the property help offset that income. In many cases, this can significantly lower your overall tax burden while someone else (the guests) helps pay down your mortgage.

Real Estate isn't just about the money you make; it's about the money you keep.

Thinking Bigger: Investing in Airbnb as a Business

If running an Airbnb out of your home sounds too personal, investing in a dedicated short-term rental property might be more appealing. Here’s what to consider:

1. Location is Key

• Properties near tourist attractions, major cities, or event hotspots typically perform better. Look for areas with year-round demand, not just seasonal traffic. A property near wineries or hiking trails could see consistent bookings throughout spring and summer, while proximity to ski resorts might thrive in winter.

2. Understand Local Regulations

• Many cities have strict laws around short-term rentals. Research licensing requirements, zoning restrictions, and occupancy limits.

• Tip: Join local Airbnb host groups or forums to stay updated on regulations.

3. Run the Numbers

Before committing to an investment, calculate your potential return on investment (ROI). Here’s a quick formula to consider:

(Projected Annual Income - Annual Expenses) / Total Investment Cost = ROI

Expenses to include:

• Mortgage payments

• Property taxes

• Utilities

• Cleaning and maintenance

• Airbnb host fees

4. Factor in Furnishing Costs

Guests expect a fully equipped and comfortable space. Budget for quality furnishings, kitchen essentials, and small touches like coffee makers and local guidebooks.

5. Automate Where Possible

From smart locks for self-check-in to professional cleaning services, automation can save you time and headaches. Tools like dynamic pricing software can also help maximize revenue by adjusting nightly rates based on demand.

Common Airbnb Pain Points (And Solutions)

1. High Turnover = High Maintenance

❌ With guests coming and going, the wear and tear on your property can add up quickly.

✅ Build a trusted team of cleaners and handymen who can step in at a moment’s notice.

2. Managing Guest Expectations

❌ From complaints about Wi-Fi speed to missing teaspoons, small issues can feel magnified to guests.

✅ Provide clear communication upfront. A detailed house manual can address common questions and prevent misunderstandings.

3. Navigating Seasonality

❌ Peak seasons bring in higher income, but slow months can feel like a financial drain.

✅ Offer discounts for long-term stays during off-peak months or consider adding amenities that appeal to winter travelers, like a hot tub or fireplace.

Lessons From My Superhost Journey

Here are my biggest takeaways after three years as a Superhost:

1. Boundaries are Non-Negotiable
   Whether it’s blocking off dates for personal use or setting clear rules for guests, boundaries ensure a sustainable hosting experience.

2. Metrics Matter
   Just like tracking clinic stats, understanding Airbnb metrics like occupancy rate and average nightly income helps optimize performance.

3. Embrace the Unexpected
   From clogged toilets to surprise cancellations, flexibility and a sense of humor go a long way.

Could Airbnb Be Your Next Side Hustle?

If you’re looking to diversify your income in 2025, Airbnb offers a unique opportunity to combine hospitality with financial growth. Whether you start small with a room in your home or go big with a dedicated property, the key is to plan strategically and learn as you go. Click here to learn more!

Ready to start your own Real Estate journey?

Don't guess at the numbers. Use my Debt vs. Invest Calculator to see if you're ready to buy your first rental.

Want to dive deeper into side hustles?

Check out my blog on other great options for health professionals: Side Hustles for Health Professionals.